In general, changes in the price level will change the:
A. real value of people's wealth and income.
B. nominal value of consumption goods and the real value of durable goods.
C. nominal value of cash balances.
D. real value of consumption goods only.
Answer: A
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Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?
A) The definition does not indicate how the increase in growth is being disturbed among the nation's population. B) The definition assumes that some of the increase in productivity goes to the poor. C) The definition is not perfect for measuring increases in a nation's productive capacity. D) The definition has understated actual economic growth because it does not take into consideration changes in leisure.
Air pollution is a problem because
A) people are greedy. B) people are not environmentally conscious. C) people make use of air without having to bear all the costs of their actions. D) a market economy does not provide as strong an incentive for environmental cleanup as a socialist economy.
At which interest rate is the present value of $360 three years from today equal to about $310 today?
a. 4.7 percent b. 5.1 percent c. 5.5 percent d. 5.9 percent
When the government institutes a target price,
A) a surplus is created. B) consumers must pay the target price. C) the farmer receives a deficiency payment if the market price is below the target price. D) the farmer receives a deficiency payment if the market price is above the target price. E) all of the above